Alphabet (GOOG) Surged on Strong Results

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 2.2% in the third quarter compared to an 8.1% gain for the S&P 500 Index. The current market focus on short-term profits led the fund to underperform the benchmark considerably in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 18.03%, and its shares gained 58.52% of their value over the last 52 weeks. On November 10, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $290.59 per share, with a market capitalization of $3.503 trillion.

Madison Large Cap Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:

"The top five contributors for the quarter were Alphabet Inc. (NASDAQ:GOOG), Lowe’s, TJX, Brookfield Corporation, and Parker-Hannifin. Shares in Alphabet bounced back in the quarter as the company reported strong results across Search, YouTube, and Cloud. Furthermore, Judge Metha released his opinion on remedies for the Google Search trial, which appear manageable relative to the Department of Justice’s proposal."

Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 178 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter which was 164 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $100 billion in revenue. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of stocks Jim Cramer discussed recently. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.